Family Farm Businesses Research Articles

Family farm and family business: Distinction and transition between concepts

Objective: Explore the conceptual limits between the family farming unit and the agricultural family business to identify the elements that determine the transition from one figure to another. Methodology: The distinctive elements between both concepts were determined from the most relevant definitions reported in the literature. Subsequently, the transition from a family farming unit to an agricultural family business was illustrated based on the case study of an enterprise dedicated to the production and collection of barley in Hidalgo, Mexico. Results: Seven distinctive elements were identified between the family farming unit and the agricultural family business. Two elements (the scale of production and productive diversification) drive the transition, three are modified consequently (the source of labor, the priority destination of productive activity, and the strength of the link with agricultural land), and the remaining two are carried out infrequently (assignment of a non-family member as main head and disengagement of family members from community life). Limitations: The findings of the study lack statistical representativeness as they come from a case study. Conclusions: The seven distinctive elements between a family farming unit and an agricultural family business can be used to study the phenomenon of entrepreneurship around agriculture and to typify agricultural units to design differentiated strategies for political intervention.

Economic Analysis of Major Crops in Jammu Division of Union Territory of Jammu and Kashmir, India

This micro-economic study focuses on the cost and returns analysis for major crops (wheat, paddy, and maize) in the districts of Jammu, Kathua, and Samba in the Jammu division. Conducted at SKUAST, Jammu during 2023, the study utilized a multistage random sampling method to achieve its objectives. Data was collected from 360 sample farmers, covering aspects such as land-holding size, costs, and return structures. The costs associated with crop cultivation varied pointedly across the districts, with Samba incurring ₹14272.57 for Cost A2 and ₹33023.58 for Cost C3 which was the highest of overall costs. Jammu had the highest main-product yield of 25.22 quintals and by-product yield of 32.70 quintals. Jammu also recorded the highest fixed costs (₹13488.30) whereas the highest total cost was in Samba with ₹30021.43. Gross returns were highest in Jammu with ₹68303.22, resulting in net returns of ₹38740.29. Jammu also had the highest benefit-cost ratio of 1:2.30, as well as the highest family labor income and farm business income (₹41755.29 and ₹43060.92, respectively). The rental value of owned land (Cost B2) suggestively impacted final costs, and Jammu district emerged as the most economically favorable for major crop cultivation. Overall, it depicted the possible profitability from cultivation of major crops like wheat, paddy and maize, that may encourage the farming community specially the youngsters to choose agriculture over private sectors, which would ultimately contribute to meet the state demand as well as contribution to SGDP.

Chinese Family Farm Business Risk Assessment Using a Hierarchical Hesitant Fuzzy Linguistic Model

Chinese family farms are continuously expanding; they are also facing various business risks that lead to a shorter lifespan. This paper constructed a family farm business risk assessment model that combined a hesitant fuzzy linguistic term sets (HFLTS) model with a hesitant fuzzy weighted average (HFWA) operator. On the basis of the factor analysis, this study built a family farm indicator system that included the natural, technical, market, policy, society, and management risk. The HFLTS was used for the assessment of weights in pairwise comparison matrices, and the HFWA operator was used as an aggregation operator to calculate the business risk score of family farms. For our case study, a method comparison analysis was also performed to check the validity of the results obtained by our risk assessment model.

A rapid review of leading indicators to measure Australian farm safety culture

Agriculture accounts for over half of Australia's land use therefore the farmers managing this land need to be safe at work. This paper offers measuring farm safety culture as a way to overcome the stagnation in the trend of fatal farm injury burden. To work towards achieving a way to measure farm safety culture, this research reviewed the leading indicators of safety. Following PRISMA guidelines, we screened for globally significant literature in the field of methodologies to measure safety climate and safety culture. We performed a rapid review of literature resulting in nineteen articles that add to our understanding of how to create and re-adapt existing questionnaires and produce validated metrics. The leading indicators were grouped into 8 dimensions where we found a translational disconnect between safety for organisational structures and safety for family farm businesses. This paper provides recommendations for government, safety regulators, policymakers, and industry of the leading indicators that may be applicable for measuring farm safety culture for Australian farmers.

What Causes Finnish Family Farmers Feel Successful? The Role of Resources and Entrepreneurial Characteristics

This study investigates the influences of resources and entrepreneurial characteristics on perceived success in familyfarms using the Resource-Based Theory and Entrepreneurial Orientation perspectives. Resources and entrepreneurial orientation are used to identify success perceptions. Confirmatory factor analysis and structural equation modelling were applied to the survey data of 805 Finnish family farmers. Family farmers rate their skills as good, and their abilities of proactiveness and self-realization success as high. The results suggest that both resources and entrepreneurial orientation affect the perceived success of family farmers, although the role of entrepreneurial orientation is relatively small. Co-variability between resources and entrepreneurial orientation is positive, addressingthe change towards the same direction. This study promotes the understanding of the family perspective and its role in the successful use of resources and entrepreneurial capabilities in farming and offers a developed construct for family farm business research.

First detection of Ehrlichia chaffeensis, Ehrlichia canis, and Anaplasma ovis in Rhipicephalus bursa ticks collected from sheep, Turkey.

Anaplasmosis and ehrlichiosis are important tick-borne rickettsial diseases of medical and veterinary importance that cause economic losses in livestock. In this study, the prevalence of Anaplasma ovis, Ehrlichia canis and Ehrlichia chaffeensis was investigated in ticks collected from sheep in various farms in Van province, which is located in the Eastern Anatolian Region of Turkey. The ticks used in this study were collected by random sampling in 26 family farm business in 13 districts of Van province. A total of 688 ticks were collected from 88 sheep and 88 tick pools were created. All ticks identified morphologically as Rhipicephalus bursa. Phylogenetic analysis of Chaperonin and 16S rRNA gene sequences confirmed A. ovis, E. canis and E. chaffeensis in this study. Of the 88 tick pools tested, 28.41% (25/88) were positive for at least one pathogen. Anaplasma DNA was detected in five of the 88 pools (5.68%), E. canis DNA was detected in 19 of the 88 pools (21.59%), and E. chaffeensis DNA was detected in one of the 88 pools (1.14%) of R. bursa ticks. To our knowledge, this is the first report describing the presence of A. ovis, E. canis, and E. chaffeensis in R. bursa ticks collected from sheep in Turkey. Further studies are needed to investigate other co-infections in sheep in Turkey.

Dual innovation of the business model: the regulatory role of entrepreneurial orientation in family firms

PurposeFamily farms are seen as a powerful force for rural development, and they are gaining more and more research attention. This study aims to explore the relationship between the social networks of family farms and the dual innovation of the family farm business model from the perspective of entrepreneurial orientation.Design/methodology/approachUsing a questionnaire survey of 169 family farms in Qingdao, China, descriptive and inferential statistics were used to analyze the data collected. The study hypothesis was tested using inferential tests (regression analysis).FindingsThe study results show that innovative, efficiency- and novelty-based business models facilitated by social networks have a favorable and significant impact on the performance of family farms. Furthermore, the relationship between social networks and new business model creation is positively influenced by an entrepreneurial orientation.Originality/valueThis study is distinctive in that it examines the mechanisms underlying family farm growth from an entrepreneurial standpoint, classifying family farm social networks for the first time into social, market and governmental categories and looking at their impact on the creation of new business models. In addition, it looks into the relationship between the innovation and social network aspect of the family farm business model from an entrepreneurial perspective, offering fresh insight into this connection. It also examines the family farm business model’s connection to innovation and social networks from an entrepreneurial standpoint, providing new insight into this relationship.

Should I stay or should I go? Gender differences and factors influencing family farm business succession in Rio Grande do Sul, Brazil

In family farming, farm transfers usually occur from the older to the new generation (from parents to children). However, the young out-migration from rural areas to urban centers has been reducing the number of children that take over the farm. Furthermore, women have largely out-migrated than men. This study analyzed the gender differences regarding the young rural perception of on-farm activities and incentives for farm business succession, and the factors influencing farm business succession. A survey with 743 young potential successors was conducted in the Rio Grande do Sul state, Brazil. The Mann-Whitney U test and the logistic regression were performed. Results show that young women have higher means regarding the parents’ incentives to take over the farm and the lack of autonomy in farm activities as factors that discourage farm business succession. Among the factors that influence farm succession, there are the incentives from cooperatives and private organizations and the valuing of family traditions. The results of this study have implications for the targeting and implementation of policies and programs to contribute to family farm continuity.

Socioeconomic determinants of the creation of farm business by youth in north-western Benin

The high potentials of the agricultural sector in terms of income and jobs in Benin contrasts with unemployment among youth. Thus, this study investigated the socioeconomic factors determining the creation of farm business by youth in the northwest of Benin. Based on a random sample of 198 young farmers and with the criteria of labor and market dependence, a typology of the farms was made. Then, an analysis of the determinants of farm business creation was carried out by using a logistic regression model. The results showed that there are four types of farms in the study area, namely: modern farm business, family farm business, modern family farm and peasant family farm. Whereas “family farm business” is characterized by both a dominance of market dependence and a family labor, the most developed form, the “modern family farm,” is characterized by both a dominance of self-consumption and a hired labor, adopted by few. Based on the market dependence criterion only, those four farming types were re-grouped into two main types: family farm and farm business. Whereas family farm is characterized by a dominance of self-consumption, farm business is market-oriented. From this typology, it emerged that there are more farmers with basic education and basic training in agriculture, belonging to an agricultural association and having land ownership in farm businesses than in family farms. The results also showed that professional training in agriculture and land ownership positively influenced the creation of farm business, whereas, savings, number of family agricultural workers and contact with agricultural extension services negatively influenced it. This suggests that making credit more attractive and developing a new type of coaching to support young entrepreneurs would be more favorable to the emergence of farm businesses. Integrating these results could help to improve the orientation of policies and projects devoted to promoting agricultural entrepreneurship among youth in Benin. Key words: Farmers, Agri-business, Entrepreneurs, Entrepreneurship, Employment of youth, Farming, Determinants, Benin

청년후계농사업 선정 농가의 가족기업농적 성격 고찰

Improving the agricultural manpower structure is an urgent issue in our agriculture. The Young Farming Project is a major project of the youth farmer support policy, targeting young farmers who want to start a new independent farming by further developing the existing succession farm selection project. In our laws and regulations, agricultural holdings are defined as farmers and agricultural corporations, and individual economic units, such as youth successors, are targeted for support. However, since there are various individual economic units within the agricultural holdings, it is necessary to try the business target from various angles in the policy project to introduce new farmers from the outside. In this study, the production unit called the young successor farm, which has the characteristics of the production unit called the family farm, is identified as an individual production unit called the farmhouse, and its characteristics are examined through the concept of the family farm business. In Korea, we are used to understanding family farm and corporate farm as opposite concepts, but in the West, family farm and corporate farm are no longer viewed as opposing concepts due to the past debate on the existence of family farm, and the focus is on how family relationships and business activities are regulated within the farmhouse. By understanding family farm through the concept of a family business, it will be possible to provide a richer perspective for policy improvement in the future.

Economics and Resource-Use Efficiency of Wheat Crop under Rainfed Conditions in the Jammu Region of Jammu & Kashmir

Economics of wheat crop revealed that, the cost-benefit ratio was found out to be highest in case of Jammu district and the least in case of Udhampur district. Consequently, the family labour income and farm business income were found in that order respectively. The overall yield of the wheat crop worked out to be 5.92, highest yield found out to be in the Jammu district and lowest in the Rajouri district. Similarly, the cost-benefit ratio was found maximum in the Jammu district, followed by Rajouri district, Udhampur district and finally by Kathua district. Production function analysis revealed that wheat crop yielded constant returns to scale. In addition, variables like human labour, machine labour, fertiliser, manure, etc. proved to be positively significant that could influence the yields of the wheat crop. Except Udhampur district, mustard crop in the rest of the district experienced constant returns to scale. Moreover, variables like machine labour, manure and fertiliser worked out to be significant. On the other hand, in the Udhampur district, rice crop revealed the increasing returns to scale and the rest of the districts showed the constant returns to scale. Human labour, plant protection chemicals and manure came out to be significant. Therefore, such input variables need to be taken care of accordingly.

Management and ownership transfer in small and medium family farms

PurposeThis study investigated the succession process in small and medium family farms as two distinct but related processes of management transfer and ownership transfer. Past studies focused on the broad subject of succession, without dissecting succession into the components that it contains. Furthermore, this study aimed to evaluate which business, family and owner characteristics were significant in the progress of each process toward the actual transfer of management and ownership.Design/methodology/approachTelephone interviews were conducted to gather information from rural family businesses in Illinois, Indiana, Michigan and Ohio. A bivariate ordered probit regression was utilized to model the processes of management and ownership transfer as separate but related processes. Both management transfer and ownership transfer were modeled utilizing three distinct stages of transfer.FindingsBusiness and owner characteristics were significant to both management and ownership transfer, whereas family characteristics only influenced ownership transfer. Farm family businesses that discussed goals, identified a successor and were educated on how to start the transfer process were more likely to have made progress in both management and ownership transfer.Originality/valueThe authors contribute empirically to the literature by modeling the components of the succession process, management transfer and ownership transfer, as separate but interrelated processes. The authors specifically investigate which business, owner and family characteristics influence the progression of management and ownership transfer in farm family businesses.

Keeping the farm business in the family: the case of farm and non-farm family businesses in the midwestern United States

Succession planning is a very crucial aspect of family business continuity. The successful transition of family businesses is especially important for small and medium scale family businesses which constitute the beginning phase of most businesses. This paper explores two critical aspects of succession planning, namely the decision to keep business ownership within the family and the transfer-readiness of family businesses. This study assessed potential correlates of these two constructs using data from small and medium scale farm and non-farm businesses in Midwest US. Results from a probit estimator showed that farm businesses were more likely to be kept within the family (P<0.01). For the full sample, the number of generations involved in daily management, the readiness of the senior management to delegate control, and the owner experience were found to be good correlates of the decision to keep the business within the family. For farms, we also found some correlation between the perception of the business as being successful and the decision to keep the business in the family (P<0.1). Results from the probit and bivariate probit models showed that capital and the number of generations in management are the most consistent correlates of transfer-readiness for the full and farm samples. Finally, we found that female owners of farm businesses were less likely to be ready for business transfers than their male counterparts (P<0.01).

An economic analysis of Isabgol and its competitive crops in Malwa plateau region of Madhya Pradesh

An attempt has been made in this study to assess the cost and returns of Tulsi and its competitive crops. Ratlam, Mandsaur and Neemuch districts in Malwa Plateau region of Madhya Pradesh were selected on the basis of maximum area covered by the Tulsi crop. From the selected districts, 6 blocks (2 from each district), 30 villages (5 from each block) and 45 sample farmers were selected randomly for detail investigation. The primary data pertains to the agriculture year 2014-15. For estimation cost and returns, cost concepts i.e. cost A1, A2, B1, B2, C1, C and C3 and net family labour and farm business incomes and B.C. ratio were considered. The result shows that the average family size of sample farmers was found five. As per caste wise distribution of sample respondents, majority of respondents belong to OBC category (82 percent) followed by general (9 percent), SC (7 percent) and ST (2 percent). Regarding the age and educational level it was found that more number of sample farmers belongs to the middle age group (51 percent), followed by old age (29) and young age group (20 percent) of sample farmers. It was observed that 56 percent sample farmers were educated up to primary level followed by higher secondary school (31 percent) and under graduation (13 percent) level. The cost of cultivation was estimated to be Rs. 49514, 32236.89 and 163384.13 for Isabgol, Wheat and Garlic respectively. Regarding cost of production, it was Rs. 4112.45, 978.95 and Rs. 8972.23 under Isabgol, Wheat and Garlic crop respectively. The data revealed that the net income was estimated to be Rs. 45313, 20003 and Rs. 28506 for Isabgol, Wheat and Garlic crop respectively. As far as the B.C. ratio was concerned it was estimated to be 1:1.95, 1:1.62 and 1:1.17 for Isabgol, Wheat, and Garlic crop respectively, which indicates that the Isabgol crop was more profitable than their competitive crops. On the basis of findings it is suggested that more efforts are required to motivate the farmer to include more area of Isabgol crop in the existing cropping pattern by the sample farmers than there is chance to improve economic condition of the farmers.

The importance of the quality of the agricultural product for sustainable success of agricultural holding

Small farms, which are mostly owned by natural persons, characterize the agricultural sector of Serbia. In order for a family farm business or holding to be successful, the following factors can be distinguished: the yield and quality of the products achieved, the prices generated for the products, and, of course, the decisions that are made in order to make the management of the farm more efficient. Given that consumers of agricultural products around the world are demanding increasing product quality, farms should work to improve competitiveness based on quality. The subject of this paper is the importance of the quality of the products for the sustainable success of agricultural holdings in the Republic of Serbia. The main goal of this paper is to provide new knowledge in the field of quality of agricultural products of agricultural holdings with the aim of achieving sustainable success.

Gender and business owner satisfaction

Purpose The purpose of this paper is to investigate how the factors associated with role satisfaction in farm and non-farm family businesses differ by gender of the business owner. Design/methodology/approach The data used are from a 30-minute telephone survey of owners of farm and non-farm family businesses in Indiana, Illinois, Michigan and Ohio. The sample consists of 627 small- and medium-size family businesses. Three ordered probit regressions are used to analyze role satisfaction. Findings Women’s participation in management and the number of family members in management are positively associated with women’s role satisfaction, while tension from resource competition is negatively associated with role satisfaction. In contrast, men’s role satisfaction is increased through high family business functioning and profit. Practical implications There is no difference in the level of role satisfaction between men and women when one controls for the owner, family and business characteristics. However, there is a difference in the factors that drive role satisfaction between men and women. This may be driven, in part, by what their roles are vis-à-vis the financial aspects of the business. Male and female business owners seem to focus on different aspects of their family business to achieve role satisfaction. Originality/value This paper determines the impact of gender on the role satisfaction of business owners of farm and non-farm family businesses in four Midwestern states. It identifies the different factors associated with role satisfaction for female and male family business owners based on their actual roles.

Factors influencing intergenerational succession in family farm businesses in Brazil

Increasing life expectancy and family farm business succession are affecting rural societies and economies in Brazil. There were hypothesized to be a large number of factors influencing family farm business succession, and the hypothesized factors were quantified based on survey results from 213 owners and 176 potential successors of family farm businesses in Rio Grande do Sul State (Brazil). The concept of successor identification was indicated by Bernoulli/binary responses to whether or not potential successors wished to remain of the family farm and whether or not the successor was identified was indicated by responses on a five-point Likert scale. The data was modeled using proportional odds logistic regression and generalized linear modeling and results from non-Bayesian and semi-Bayesian methods were compared. Encouraging the potential successor to stay and taking active steps to pass on the farm were positively associated with successor identification. The potential successors were discouraged to succeed their parents in the family farm business by preferences for urban conveniences over rural challenges and these preferences were associated with a lack of succession planning.

Characteristics of Intergenerational Succession in Family Farm Business

Characteristics of Intergenerational Succession in Family Farm Business

Farm diversification strategies in response to rural policy: a case from rural Italy

Entrepreneurial turns, serendipitous events, entrepreneurial skills and values are critical to the success of rural SMEs. Likewise, ‘Resource Orchestration’ is an important element of strategic, entrepreneurial activities. An analysis of a case study of a rural family farm business in Italy is provided demonstrating an innovative model of ‘rural entrepreneurship’ focused on farm diversification to valorise full employment of family members and increased productivity as a direct response to rural policy. The analysis shows how collective family entrepreneurship can exploit ‘clusters of opportunities’ through updating entrepreneurial skills. ‘Serendipitous acts’ are integrated into localised diversification strategies.

Uticaj cene dizel goriva na ekonomske efekte poslovanja ratarskih porodičnih gazdinstava

Bearing in mind the increasing price of diesel fuel, it is necessary to determine its effect on the production of family farms as main factors of agricultural production in Serbia. First of all, it is necessary to pay attention to the farms specializing in crop production because the price of diesel fuel has the biggest influence on economic effects of their production. In order to achieve this goal, the model of a family crop farm was used in this paper. This model was used to determine how the change of diesel fuel market price influences the change of efficiency ratio of the total farm production. Calculations were made for production with subsidies and without them, as well as for two initial presumptions - when the sowing structure of farm was not optimized and when it was. Besides forming models and optimization of production structure, method of sensitive analysis was also used in the paper, starting with a premise that market price of fuel fluctuates in the interval reflecting changes that occur in practice. It was determined by analysis that without optimization of the sowing structure, family farm businesses were economically efficient only with government subsidies. On the other hand, on condition that optimal sowing structure was used, production is economically efficient even without subsidies, except for the case with maximized presupposed fuel price. Ratio of economical efficiency in corn production (as the most important crop in the sowing structure of a family farm) for different yields and corn price with presupposed increase of fuel price was also analyzed in the paper.